KARACHI: Highly anticipated oil and gas field Makori-East started production in May against expectation of not coming online before July, according to monthly report released by Pakistan Petroleum Information System.
The news flow may create a positive price trigger for Pakistan Oilfields as it would offset market concerns on recent reduction in POL’s own operating oil field like Pindori and Domail. The report could also reflect positively on Pakistan Petroleum Limited and Oil and Gas Development Company that have a working interest of 28% each.
As per the report, Makori East produced 447 barrels of oil per day (bpd) and 2 (million cubic feet per day) mmcfd of gas in May, according to a Topline Securities research note. The field which is predominantly oil has the potential to produce over 11,000 barrels of oil per day.
Topline Securities believe the complete ramp-up of the field is tied up with the development of Makori CPF that is scheduled to commission in early 2014 as existing facility at Tal block has a capacity to process only 370 mmcfd of gas and 10,000 bpd of oil.
Published in The Express Tribune, July 12th, 2012.
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False analysis. The production from Makori East has already been priced in - on POL.